Loan on Card
The Hidden Cash Cow of Your Credit Card – Is It Worth It?
This is an interesting feature from most credit cards where the cardholder can withdraw up to 80% of their available credit limit into liquid cash for their own use. This service is a type of credit card cash advance, but it differs from a typical cash withdrawal from an ATM in that it often comes with a fixed repayment plan and a specific tenure, much like a personal loan.
The purpose is to get a lump sum loan from your credit card limit and repay it with a fixed tenure and a fixed monthly repayment amount.
The Pros
Quick and Easy Access to Funds: Unlike a traditional personal loan, a “loan on card” typically involves a simple application process with no additional documentation required. The cash is often disbursed almost instantly into your bank account.
0% Upfront Fee & Interest (During Promotion): With a 0% upfront fee and a zero annual interest rate during a promotional period, this is literally free cash for those who have the discipline and a plan to use it wisely, such as for short-term investments or bridging a financial gap.
Flexible Repayment Tenure: The fixed tenure and repayment amount make it easier to budget and manage your finances. You know exactly what you need to pay each month, which helps with financial planning and discipline.
The Cons
High Interest Rates After the Promotional Period: The most significant con is the high-interest rate that kicks in after any promotional period ends. These rates can be much higher than those for personal loans, leading to a massive increase in the total amount you repay if you can’t settle the debt within the interest-free window.
Immediate Interest Accrual: Unlike regular credit card purchases, which have a grace period of up to 20 days before interest is charged, “loan on card” services often start accumulating interest immediately after the cash is disbursed. Even with a promotional offer, it’s crucial to read the terms and conditions to understand when the interest clock starts.
Impact on Credit Score: A “loan on card” will increase your credit utilization ratio, which is the amount of credit you are using compared to your total credit limit. A high utilization ratio can negatively impact your credit score, making it harder to get approved for future loans or credit cards.
Potential for a Debt Cycle: The easy access to cash can be tempting. Without a solid repayment plan, the high-interest rates and fees can lead to a dangerous cycle of debt, where the minimum payments only cover the interest, and the principal amount barely decreases.
Key Difference: Loan on Card vs. Personal Loan
While both provide a lump sum of cash, they are not the same.
Loan on Card: Uses your existing credit card limit. The approval is almost instant and requires minimal paperwork. However, the interest rates are generally higher, and the amount you can borrow is limited by your credit card limit.
Personal Loan: A separate loan product with a new application process. It may take longer to get approved, but it often comes with a lower, fixed interest rate and a longer repayment tenure, making it more suitable for larger, long-term financial needs.
In general, transactions that are converted into Balance Transfer or Loan-on-Card programmes are not eligible for cashback or mileage rewards. It would be unrealistic for banks to allow “double privileges” — for example, a cardholder splitting their debt into smaller installments, avoiding the high finance charges, and at the same time still earning cashback or air miles on the repayments. Hence, repayments under these programmes are treated strictly as debt servicing, not reward-earning transactions.
Understanding the Repayment Process
A “loan on card” is a powerful tool, but it’s important to understand how the repayment works over time. Unlike a traditional credit card balance that can fluctuate, a loan on card has a fixed monthly repayment plan that slowly frees up your available credit limit as you pay it down.
The table below provides a simple example of how a RM 23,000 credit limit is impacted by an RM 18,000 loan (below 80% of the credit limit) over a 12-month period, with a fixed monthly repayment of RM 1,500, on a 0% upfront/interest campaign.
Banks and Their Services
Different banks name this service differently. Here are the names of the Loan on Card offered by banks in Malaysia:
- Aeon Credit – Ready Cash Plans
- AFFIN Bank – Cash-on-Call
- Alliance Bank – Fast Cash
- AmBank – QuickCash
- BSN – EasyCash
- Bank Islam – GoCash
- Bank Muamalat – InstaCash
- Bank Rakyat – nil
- CIMB – CashLite
- Hong Leong Bank – Quick Cash
- HSBC – Cash Instalment Plan
- Maybank – EzyCash
- OCBC – Call-for-Cash
- Public Bank – Easy Cash
- RHB – CashXcess
- Standard Chartered Bank – Cash on Call
- UOB – Flexi Credit Plan
The table below highlights ongoing Loan on Card promotions from major banks in Malaysia. For updated terms and conditions, please visit the official websites linked.
⚠️ Notice: Images of the credit cards, Logos of the banks and Official links have been removed to comply with legal requirements. Please search for the card directly on the bank’s official website to apply.
Bank
Remarks
3.99% upfront, tenure 6 months, minimum LoC of RM 1,000, with up to 80% of credit limit. T&C
2.2% upfront, tenure 6 months, minimum LoC of RM 2,000, with up to RM 20k or 80% of credit limit (whichever lower). Campaign period: now till 31 Dec 2025. T&C
9.88% annual interest rate, tenure 12 months, minimum LoC of RM 1,000, with up to 80% of credit limit. T&C.
9.38% annual interest rate, tenure 12 months, minimum LoC of RM 1,000, with up to 90% of credit limit. T&C
0% upfront/interest, tenure 6 months, minimum LoC of RM 500, with up to RM 5k or 80% of credit limit (whichever lower). Campaign period: now till 22 May 2026. T&C. New to Bank ONLY.
6% profit charge p.a., minimum tenure 3 months, minimum BT of RM 1,000, with up to 90% of credit limit. T&C.
Bank Rakyat
Not a permanent card facility. No campaign for the time being.
3.99% annual interest rate, tenure 12 months, minimum LoC of RM 1,500, with up to 90% of credit limit. Campaign period: now till 30 Sept 2025. T&C. HLB connect ONLY.
0% upfront/interest, tenure 12 months, no minimum LoC, with up to RM 20k. Campaign period: now till 30 Sept 2025. T&C. New to Bank ONLY.
0% upfront/interest, tenure 6 months, minimum LoC of RM 2,000, with up to 70% of credit limit. Campaign period: now till 31 Dec 2025. T&C
5.99% annual interest rate, tenure 12 months, minimum LoC of RM 1,000, with up to 90% of credit limit. T&C
0.88% upfront, tenure 6 months, minimum LoC of RM 3,000, with up to 80% of credit limit. Campaign period: now till 31 Dec 2025. T&C. Mastercard Cardholders ONLY. 1.5% upfront, tenure 6 months, minimum LoC of RM 3,000, with up to 80% of credit limit. Campaign period: now till 31 Dec 2025. T&C. Visa Cardholders ONLY.
0% upfront/interest, tenure 12 months, minimum LoC of RM 1,000, with up to RM 30k or 80% of credit limit. T&C. New to Bank ONLY.
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